NYC's 'Click to Cancel' rule is in effect. Here's what it means for consumers.

NEW YORK - New Yorkers should now have an easier time canceling unwanted subscriptions. 

As of Oct. 1, New York City is enforcing a "Click to Cancel" rule that says, among other things, "Companies must provide you with a straightforward cancellation process in the same method as sign up."

It stems from an executive order signed by Mayor Zohran Mamdani in July. 

What does ‘Click to Cancel’ mean? 

What we know:

According to the New York City Department of Consumer and Worker Protection, the new "Click to Cancel" rule means businesses cannot "force their customers through confusing, time-consuming hurdles to cancel unwanted subscriptions."

Why you should care:

For consumers, the city says that means:

• Companies must clearly explain subscription terms to you
• Companies must clearly disclose consumers’ rights when buying or canceling subscriptions
• Companies must provide you with a straightforward cancellation process in the same method as sign up.
• Companies cannot ask that you pay to ship them things they gave you for free.

What happens if a company breaks the rules?

Big picture view:

Businesses may face fines starting at $525 for violating the new "Click to Cancel" rule. They may also be required to issue refunds. 

How to file a complaint

What you can do:

Consumers can submit online complaints to the NYC Department of Consumer and Worker Protection here if they believe companies are violating the "Click to Cancel" rule. They may also be filed via mail or fax by filling out a complaint form. 

The city's website says complaints can be filed about any of these situations: 

• You were not clearly told the terms of the subscription.
• It was hard to cancel the subscription. For example, you signed up online, but were forced to cancel your subscription on the phone, in person, or another way.
• The business delayed canceling your subscription.
• The business sent you products that you did not ask for, and expected you to return or pay for them.
• You were not informed of changes to the subscription terms.
• You were not informed of auto-renewal.

What's next:

Once a complaint is filed and reviewed by the department, a mediator may be assigned to investigate further and request a written response from the business. 

Read the rule

Dig deeper:

Here is the full text of the rule, which is also available on NYC.gov. 

New York CityConsumer